Preferred investing

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April 21, 2024

by an investor from Duke University in Texas, USA

What is the market right now to invest in a preferred?

Searcher has found an attractive business and is seeking equity capital.

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Reply by an investor
from Duke University in Texas, USA
thanks Thomas!

just to be clear, you mean 10-15% cash yield on the preferred?

and what do you mean by "20-50% equity participation"? How much equity participation should the preferred get if the searcher needs $1M equity and is raising $400k of that via preferred, but investing the rest himself? And, rest of the purchase is being funded through debt (not SBA to avoid personal guarantee)
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Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
We did a special webinar session on equity in sba loans. Email me for links to the recording. We also have a weekly office hours in all things sba. Email for links to register. redacted
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